PM Report: California's New Health Care Plan

8/25/2010 4:58PM

California lawmakers are expected to pass Wednesday legislation to create a new exchange where consumers will be able to purchase health insurance. Anna Mathews has details from Los Angeles and tells us why other states are watching closely.

This transcript has been automatically generated and may not be 100% accurate.

... the new health care legislation close to being passed in California ... we knew it even if you don't live ... in the Golden State will tell you why right here right now on the news not get up an unwelcome I'm Simon Constable ... joining me on the set we have no Lipschutz ... and Bob O'Brien thank you very much family to be with him ... let's go straight to California now Anna Mathews The will sit down with stunning by Los Angeles' an hour ... this has been passed on right in saying this legislation that it's expected to what's expected to be in the bill ... well it's two bills actually May will create help exchange where consumers and small businesses will be able to ... buy our coverage ... and this is all part of the of the health care reform passed on this last ... the slashing of its last twelve months ... what else can we expect from it this is that this is a big deal ... on for consumers to buy their own health care right ... yes and this is something that consumers across the country will see their states also having CDB is that the legislation ... requires states to either set up in exchange for it opts to their citizens use ... a better exchange that hasn't yet been created ... it's based in vocations are for people to buy their own Insurance Battle of Reidy twenty babies kids using it ... some people why is it because he'll be eligible for federal subsidies to help them find their plans ... small businesses with ... fewer than a hundred employees are also eligible to get planting the exchange ... no novice at this ... level of discretion for the central business on this question for them ... about how this is set up in California hasn't set up so that ... I mean isn't just any plan that can get into the into the health care changes that can explain that ... that's right that if states do have some discretion about how the Senate the exchanges ... California is leaning toward a more robust exchange in one aspect that ... is that the exchange to be governed by ... Canaccord ... habit aren't just elected contract with health insurance ... so instead of just offering any plan that meets the federal requirements and essentially beatings past it announced ... it will be able to select plant it feels meets its criteria as models that isn't at ... this time of the global law and I just wanted to ask is is this considered is the California legislation ... considered to be credible blueprint that the rest of the ... states will follow preserved things idiosyncratic to California ... on the devastated going to pass ... I think is seen as rather the weather and certainly something the other states will take a look back ... on his three different states have been around politics their needs and their ... particular insurance market sell and we expect every state to look like California ... I'm EADS but I do think the California bills ... when they become final will be closely watched partly because they do it they're doing it very early in the game they'll be among the first ... and also because California is just so large it'll be a model that people can't ignore because it'll probably be the largest single ... Steve exchange thank you very much I Mathison The was pajama factories and new form of the Max and I wanted it to be the chance to weigh in on this ... guy think ... what what was seen in a note the healthcare debate was huge it is divisive was also abstract so I think you will receive ... is fundamentally this greater government intrusion ... into the insurance buying ... an insurance you know in the street I think they're some of the proposed California The would restrict how often ... insurers could raise rates things like that sleeping for the insurance industry and for investors in shares and three ... watch this closely because it's the first tangible evidence I think of what health care really means he added that some as of the branches these the Plies up and the main someone on the next public with the see you again deal the US and news on the SCC which is paid ... for ... shareholders tells about a yet it is huge news in the corporate governance basin this is an issue ... that has been debated for years not affect the SEC's famines a marriage bureau ... said it may have been beaten down for thirty years ... and that in the end of ... the subtle yet ... and the term has been used for ... its proxy access and what it means in simple terms is that large institutional shareholders ... in certain cases will now be able ... to nominate ... directors themselves ... the company's when the son of the proxy materials will have to have those competing needs of the shale was put up ... along with the names of the ... management supported candidate so in other words the sort of almost a free right now for these large ... shareholders to get their nominees out there ... and what it will mean is no through has been a lot of criticism of boards of course generally ... that they to some degree been asleep at the switch to recent scandals of different eras ... and this will allow shareholders ... to get ... their own direct people on ... the business is often Sepulvado second Pierre ... will get some people who have different agendas will be representing different agendas beyond just maximizing shareholder value and you have more fractious board was a very controversial topic ... and it's not necessarily well you recognize that the problem exists ... this doesn't necessarily seem to be the best way to redress if you're expecting me my perspective has been certainly that ... you know that ... electing directors is funny in some places you can elect a director with a solution one yes vote ... but more more companies it's doing majority votes like a normal election a political action ... Molly Neal was banned ... that's enough to know the words of shareholders ... me if directors the fifteen percent to get on ... then that's enough shareholder power for them ... I messed up in the right direction I think made many thank you very much Neal Lipschutz of Darden's ISI's is now time for the monster lead in the more time it's not something the MarketsHub of Paul Viniar Paul vignette ... on the Janka mean costs on the list Datacom weekdays at eleven Paul thanks for joining the Labour government to lead the age of a midday rally really interesting day rally ... that were right because ... the futures were down the stock that the open the Dow down about a hundred ... as low as ninety nine thirty seven ... into terrible reports this morning when the new home sales in the durables ball much worse than expected ... that drove him down the ten year yield ... fell as low as two point four one that knocked the ... wind nineteen month low and very well ... so moral online summary decided that all of that was just enough ... be sure to see Treasury yields will back up ... the stock come off their lows of the child ... they also accuse TSB was up about ... and of about three and a half so little bit off the ... behind the Dow was up about fifty one point ... so not really sharp moves with a condom when Aldgate was overseen by involve ... a blind eye modifying wellhead I'm you know actually just might be a mite funds was by ... this in and out again ... the bottom line is that somebody put a line into them under the market OK I will it last ... that's it that's the catch minus twenty nine another look at a ... three percent move today in St ... get out ... when you know really yet to really buckle down ... the line ... on the stock will continue washing thank you very much Paul vignette ... of dynasties was touched Monday of weeks as the eleven now let's get on the Dallas Westcomb upcoming Middle Seat column is the stunning By and Scott's some interesting news ... I've come a strange the main ... town in the price of the talented is not related to the distance covenant on Friday example head Neil KLIA thousand ABI's ... New York and London Heathrow which is the same distance thirty six was the last one so when I ... Willie July ... Simon in India has been going on for years ... a good time to take a look at ... how illogical it is on ... in some regards international routes are more expensive but I really comes down to on low fare competition which kept Los Angeles and you don't have one ... it also comes down to the ... kinds of people the airlines are put on your point about ... what it's all a business travelers the jackup price and it's a bunch of leisure travelers the end of their price sensitive and prices in the lower ... end and Scott will you know both consumers ... as well as the country's meaning the airlines themselves to benefit from the confusion they create ... I think at this point in their experiences ... consumers almost expect this thing ... to be basically the pretzel logic of a of the consumer purchase ... yes that's right but it still makes people crazy ideas we've done ... on Hartford Washington and one most extensive routes in the country ... um and you know a guy who was Company A thirty nine dollars for that trip ... and it just bought tickets for his family sustained for nine hours ... how is that the cost or thirteen hundred Hartford and nine hundred and three ... and raise prices in the Highlands in many ways embarrassed about this that some of that you don't pay by the mile or they might cool with that ... some of the duty to value Guide to try and a ... correlation between distance and in their ... love of the others it's basically do whatever they can get and ... then and there you know they're just as ... it integrates who is as the customers are on the heels on ... Sunday that ... are for watching every below their guys get a minimum thirteen hundred dollar days are over ... for us there and done in MLB Get in bringing their hands off we go and it seems as though ... the airline consolidation which has taken place on the last two or three years ... when only decreased competition ... and exacerbate the very problems to describe ... now that that's ... a mixed bag with the ... guys who are consolidating generally don't compete against each other and cried ... the Red Sox valued at United competition in the Dulles Airport makes no difference in terms of pricing United praises the same way as us there ... is a really great thing is really determined by ... its wine on the airplanes come in more than that when there is ... a low fare competitors in the market are not on the puzzle of a competitor Britain sentiment ... continued to go anywhere thank you very much trouble thumbnail wolf it down and Dallas thank you Volvo crime ... you can afford you can allow for higher ... unless of course anyway that's it ... that's our show that's the new supper tonight comeback eight thirty tomorrow with Kelly Evans laugh ... all the news you need to know before the opening bell Abbott great night ...